💡 2025 Tax Changes That Could Save Small Business Owners Thousands
If you’re running a small business, freelancing full-time, or building a side hustle, the new tax changes in the Big Beautiful Bill could mean bigger deductions, more savings — and less money going to the IRS in 2025.
This bill is loaded with updates that directly impact self-employed individuals, LLC owners, freelancers, and gig workers. And here’s the thing — if you know how to apply these changes, you could keep thousands more in your pocket this tax season.
💡 Want the full walk-through? This post goes hand-in-hand with my YouTube video — Part 2 of my Big Beautiful Bill breakdown — where I explain each change in more detail with real-world examples. You can watch it here: [click to watch]
1. Bonus Depreciation is Back to 100% in 2025
If you’ve been in business for a few years, you’ve probably heard about bonus depreciation — the ability to write off the full cost of certain assets in the year you put them into service.
Here’s the good news: after dropping to 80% in 2023 and 60% in 2024, the Big Beautiful Bill brings it back to 100% starting in 2025.
Why this matters:
You can deduct the entire purchase price of qualifying business property (equipment, furniture, certain vehicles) in year one.
It applies to both new and new-to-you (used) property.
Example: Let’s say you’re a wedding photographer and your camera gear is outdated. In July 2025, you buy $12,000 in new equipment. Under the new rule, you can write off that entire $12,000 on your 2025 return — lowering your taxable income and potentially your tax bill.
Pro tip: Don’t treat this like a last-minute shopping spree in December. Plan your purchases around your business cash flow and your tax strategy.
2. Section 179 Deduction Limit Raised
The Big Beautiful Bill also increased the Section 179 deduction limit to $2.5 million, with a phase-out starting at $4 million.
Section 179 is similar to bonus depreciation but works differently:
Bonus depreciation is automatic for qualifying property unless you opt out.
Section 179 lets you choose which assets to expense in year one.
You can also use Section 179 for certain business-use vehicles, computers, and improvements to nonresidential property — like installing a new HVAC system in your office.
And here’s a smart move: you can combine Section 179 and bonus depreciation in the same year for maximum savings.
3. QBI Deduction is Now Permanent
The Qualified Business Income (QBI) deduction — up to 20% off your taxable income if you’re self-employed, an LLC owner, or a sole proprietor — is now permanent.
Before, this deduction had an expiration date. Now you can plan long-term knowing it’s here to stay (at least for now).
A few important notes:
It’s not automatic — certain industries and income levels have limits.
How you structure your business and pay yourself can affect the amount you qualify for.
This is one of those areas where professional advice can save you thousands.
4. Changes to Quarterly Estimated Payments
Starting in 2025, higher standard deductions and adjusted income brackets will affect quarterly estimated taxes.
Misconception alert: A bigger standard deduction doesn’t always mean smaller quarterly payments. If your income goes up, your payments might too.
Example: If you currently make $80,000 and send the IRS $4,000 each quarter, those numbers may shift. If you don’t adjust, you could underpay and get hit with penalties.
Pro tip: Revisit your quarterly estimates in early January using the updated IRS tables.
5. Mileage Deduction Increase
Starting in 2025, the standard mileage rate for business use of your vehicle increases to 68 cents per mile.
If you drive a lot for work — client meetings, deliveries, job sites — that extra 2–3 cents per mile adds up.
Example: 10,000 miles in a year = $6,800 deduction (up from $6,500 last year).
Even partial trips count for the business portion — just keep detailed records. Whether you use a mileage tracking app or an old-school log, this is one deduction you don’t want to lose in an audit.
Final Takeaways
The Big Beautiful Bill isn’t just a list of tax law changes — it’s an opportunity to plan ahead and keep more of what you earn. The key is to be proactive, not reactive.
📺 Want more details? Watch my full Big Beautiful Bill breakdown on YouTube here: [Click Here]
📘 Need help identifying your deductions and staying compliant? Check out my ebook, Tax Essentials for Entrepreneurs — it’s packed with clear, real-world guidance you can use right away.
📅 Ready for a personalized strategy? Book a Business Tax Advisory Call with me, and we’ll create a plan that works for your unique situation.
About the Author:
I’m Coach Ktasha (Tasha), a tax and business consultant dedicated to helping individuals and entrepreneurs navigate taxes, maximize deductions, and build strong financial foundations. My goal is to make tax season stress-free and provide you with the knowledge to make smart money moves all year long.
📌 Join My Free Newsletter | 📌 Book a Consultation | 📌 Follow Me on Instagram | 📌 Follow Me on TikTok